Macroeconomic theory assumes that factors of production in the economy are homogeneous and
fungible. As a result, it may be ill-suited for developing policy responses to the recent financial
crisis. Theories of strategic management and organization, with their emphasis on heterogeneously
distributed resources and capabilities, may be better positioned. Examples of where macroeconomic
theory may lead policies astray, and where theories of strategic management may
be more appropriate, are provided.